Tennessee charges a reduced 4% state sales tax on food in Tennessee that you buy to prepare at home, plus a local tax of up to 2.75%, for a combined rate that tops out at 6.75%.1TN.gov. Due Dates and Tax Rates Prepared food, candy, dietary supplements, alcohol, and tobacco don’t get the discount and are taxed at the full 7% state rate instead.2Justia Law. Tennessee Code 67-6-228 – Food Retail Sales Tax
What Counts as Food at the 4% Rate
Tennessee defines “food and food ingredients” as substances sold to be eaten or chewed by humans for taste or nutritional value.3Tennessee Department of Revenue. SUT-53 – Food and Food Ingredients – Definition and Tax Rate In practice, that means the ordinary contents of a grocery run: bread, milk, eggs, canned goods, raw meat, fresh produce, cereal, frozen dinners, and the like. Soft drinks qualify for the reduced rate too, as long as the seller hasn’t prepared them (a bottled soda counts; a fountain drink poured by the cashier doesn’t).4Tennessee Department of Revenue. Sales Tax on Food and Food Ingredients
What Gets Bumped Up to 7%
Several categories are carved out of the reduced rate and taxed at the standard 7% state rate plus local tax: alcoholic beverages, tobacco, candy, dietary supplements, and prepared food.2Justia Law. Tennessee Code 67-6-228 – Food Retail Sales Tax
Prepared Food
A grocery item counts as prepared food if it meets any one of three tests: the seller sold it heated or heated it before selling; the seller combined two or more ingredients into a single item; or the seller provided utensils like plates, forks, cups, or napkins.5Tennessee Department of Revenue. SUT-54 – Prepared Food – Definition and Tax Rate
That’s the rule that catches grocery shoppers off guard. A rotisserie chicken from the deli case, a bowl of soup from the hot bar, a store-mixed salad, and a deli sandwich are all prepared food taxed at 7%.6Tennessee Department of Revenue. Sales Tax on Prepared Food The same raw chicken sold uncooked from the meat department gets the 4% rate. What matters is what the seller did to the item, not where it sits in the store.
Candy and the Flour Rule
Tennessee defines candy as sugar, honey, or other sweeteners combined with chocolate, fruits, nuts, or flavorings and shaped into bars, drops, or pieces. There’s a real quirk here: if flour appears on the ingredient list, the product isn’t candy for tax purposes and gets the 4% food rate instead of 7%.7Tennessee Department of Revenue. Sales Tax on Candy A Twix bar, which contains flour, is taxed differently from a plain chocolate bar sitting next to it on the shelf. The label controls, not what the item looks or tastes like.
Dietary Supplements
Vitamins, minerals, herbal products, protein powders, and similar items marketed as supplementing the diet are taxed at 7%, not the reduced food rate.
Adding the Local Tax
The 4% state food rate comes from Tennessee Code Section 67-6-228.2Justia Law. Tennessee Code 67-6-228 – Food Retail Sales Tax On top of that, every county and city adds a local sales tax capped at 2.75%, with most jurisdictions at or near the cap.8TN.gov. Local Sales Tax So the total tax on unprepared groceries usually lands between roughly 6% and 6.75%, and the total on prepared food, candy, or supplements can reach 9.75%.1TN.gov. Due Dates and Tax Rates
Tennessee’s local single-article cap, which limits local tax to the first $1,600 of any one item, technically applies to grocery purchases, but no single grocery item comes close to that threshold.9TN.gov. Single Article Special Tax Rates For food shopping, ignore it.
SNAP and WIC Purchases Are Exempt
Food bought with SNAP benefits is fully exempt from Tennessee sales tax, state and local, even on items like candy or soft drinks that would otherwise be taxable. Retailers cannot charge tax on the SNAP-paid portion of a transaction.10Food and Nutrition Service. SNAP Retailer Notice – Bag Fees, Sales Tax, Seasonal Items Tennessee law codifies this exemption for food stamps and electronic benefits transfer.11Justia Law. Tennessee Code 67-6-337 – Sales Paid for With Food Stamps The same rule applies to approved WIC purchases.
Vending Machines and Delivery
Food sold from a vending machine still gets the 4% state rate if it qualifies as food. Vending sales use a flat 2.25% local rate rather than the specific rate of the jurisdiction where the machine sits.12Tennessee Department of Revenue. Filing Changes for Vending Sales
If you order groceries for delivery or curbside pickup, the delivery fee is part of the taxable sales price and is taxed at the same rate as the food itself.13Tennessee Department of Revenue. SUT-23 – Sales Price – Shipping Charges For a pure grocery order, that means the fee is taxed at 4% plus local. For a mixed order that includes prepared food or non-food items, expect the delivery charge to be split or taxed at the higher rate.
Grocery Tax Holidays
Tennessee has occasionally suspended the grocery tax entirely for a limited window. The most recent holiday ran from August through October 2023 and covered food and food ingredients for home consumption, with prepared food, candy, dietary supplements, alcohol, and tobacco all excluded.
These holidays aren’t automatic or annual. Each one requires separate authorization from the legislature. Several bills were introduced in early 2026 proposing new holidays or partial exemptions, including one aimed at residents 65 and older and another creating a one-day-per-month exemption, but none had passed at the time of writing. Outside an authorized holiday, the 4% state rate plus local tax applies year-round.